Paragraph 20

(1)

The reliefs provided by paragraphs 6 to 12 (and paragraph 18 so far as it relates to those paragraphs) are not available if control of the underlying asset is acquired by—

(a)

a bond-holder, or

(b)

a group of connected bond-holders.

(2)

A bond-holder (“BH”), or a group of connected bond-holders, acquires control of the underlying asset if—

(a)

the rights of bond-holders under an alternative finance investment bond include the right of management and control of the bond assets, and

(b)

BH, or the group, acquires sufficient rights to enable BH, or the members of the group acting jointly, to exercise the right of management and control of the bond assets to the exclusion of any other bond-holders.

(3)

In accordance with sub-paragraph (1), in the case of the reliefs provided by paragraphs 6 and 10—

(a)

if BH, or the group, acquires control of the underlying asset before the end of the period of F114 days beginning with the effective date of the first transaction, paragraphs 6 and 10 do not apply, and

(b)

if BH, or the group, acquires control of the underlying asset after the end of that period and conditions A to C have been met, paragraphs 7 and 11 apply.

Annotations

Textual amendments

F1: Words in Sch. 61 para. 20(3)(a) substituted (with effect in accordance with s. 46(10) of the amending Act) by Finance Act 2019 (c. 1), s. 46(9)(b)